World Holdings (2429) Q4 2024 earnings summary

Executive summary

• Net sales increased 13.3% year-over-year to ¥242,226 million, but operating profit declined 17.1% to ¥8,593 million, mainly due to real estate sales timing, higher expenses in the Human Resources segment, and slow recovery in key sectors.

• Profit attributable to owners dropped 19.7% to ¥4,981 million, reflecting challenging market conditions and lower-than-expected recovery in the semiconductor industry.

• The group leveraged its diversified business portfolio to mitigate risks and maintain sales growth.

• Services Human Resources and Information & Telecommunications businesses posted YoY growth in sales and profits, exceeding plans.

• Agricultural Park Business outperformed, with increased visitors and sales per visitor, driven by facility upgrades and favorable weather.

Financial highlights

• Net sales: ¥242,226 million (+13.3% YoY), operating profit: ¥8,593 million (-17.1% YoY), ordinary profit: ¥8,551 million (-16.6% YoY), profit attributable to owners: ¥4,981 million (-19.7% YoY).

• EBITDA: ¥10,701 million (-11.9% YoY).

• Operating profit margin decreased to 3.5% from 4.8% YoY.

• Net assets increased to ¥47,456 million, with an equity ratio of 25.5%.

• Net income per share was ¥280.39, down from ¥353.61 YoY.

Outlook and guidance

• FY2025 net sales projected at ¥281,439 million (+16.2%), operating profit at ¥10,179 million (+18.5%), and profit attributable to owners at ¥5,389 million (+8.2%).

• Dividend payout ratio to increase from 30% to 35% in FY2025, with a planned year-end dividend of ¥106.20 per share.

• Management expects continued uncertainty in 2025 due to global inflation, monetary tightening, and geopolitical risks.

• Human Resources and Education Business to focus on flexible adaptation to market changes and increased training investment.